Capital Allowances Act 2001 section 434

Time when expenditure incurred

Section 434 determines the point in time at which pre-trading expenditure on a mineral extraction trade is treated as having been incurred for the purposes of claiming mineral extraction allowances.

• Expenditure incurred before a mineral extraction trade begins is treated as incurred on the first day the trade is actually carried on.
• This timing rule applies to expenditure incurred for the purposes of the trade by the person who is about to carry it on.
• Pre-trading expenditure on mineral exploration and access is excluded from this rule, as it is dealt with separately under section 400(4).
• The exclusion avoids duplication between the general pre-trading expenditure rule and the specific provisions for exploration and access costs.